Page 121 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Unit 5: Appraising and Evaluating People in the Organization

Notes
As a manager you are concerned about the animosity he is creating in your department.
As the performance appraisal policy of the company, each employee has to undergo an
performance evaluation interview every year. The rating of the employee is based in
terms of achievement and evaluation of behavioural attributes. Based on the rating the
employee will be given an increment.
Pharma Company
S K Pharma Company has its headquarters in Mangalore. It is manufacturing and
marketing drugs and medicines. The company has met severe competition from large
pharma companies with foreign collaboration. Mr. K V Nayak, Vice-president marketing,
has been with the company for the last two years. He has ambitious plans for capturing
a sizeable share of the South Kanara market and in Kerala.
As the company is medium-sized, Mr. Nayak has kept his marketing department and
team lean and trim. The medical representatives were given aggressive targets and were
pushed to reach their respective targets. The representatives worked hard to complete
their respective targets. Mr. Nayak himself worked almost 12 to 14 hours a day. However,
there was no formal appraisal and reward system in S K Pharma.
During the last year, more than 25 medical representatives had left the company due to
unsatisfactory increments and promotions. Those who left the company were excellent,
workers. Mr. Nayak did not care for this high turnover. He was overconfident that he
would be able to hire freshers since S K Pharma paid the highest salary in the industry.
Mr. Nayak also felt that he could select candidates who were not happy with their
remunerations in other companies.
Mr. Nayak had never communicated to the Medical Representatives about their
performance or reasons for not recognising their outstanding performance.
Questions:
1. What do you perceive is the basic problem in S K Pharma? Suggest the steps you
will take to correct the situation.
2. What type of post-appraisal interview would you recommend? Should the system
include post appraisal rewards like increments and promotions? Give reasons.

Self Assessment

Multiple choice questions:
5. Central tendency is the reluctance to make extreme ...........
(a) ratings (b) raters
(c) ratees (d) none of these
6. The system should be ............. evaluated to be sure that it is meeting its goals.
(a) serially (b) timely

(c) periodically (d) none of these
7. Actual performance is compared with the predetermined ............. standards.
(a) ratings (b) job
(c) raters (d) performance
8. Performance appraisal is a method of evaluating the ................ of employees in the
work spot.
(a) marks (b) behaviour
(c) talent (d) background

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